Dirk Kempthorne on Social Security

Republican Governor (ID) and previously Senator

Voted YES on allowing Roth IRAs for retirees.

Senator Roth (R-DE) offered this amendment to the IRS Restructuring and Reform Act to allow people older than 70.5 with incomes over $100,000 to move funds from an Individual Retirement Account into a Roth IRA.
Status: Amdt Agreed to Y)56; N)42; NV)2

Voted YES on allowing personal retirement accounts.

Vote on an amendment expressing the sense of the Senate that the Finance Committee should consider legislation to use the federal budget surplus to establish personal retirement accounts as a supplement to Social Security.

Voted YES on deducting Social Security payments on income taxes.

Maintain long-term solvency of Social Security and Medicare.

Kempthorne adopted the National Governors Association position paper:

The Issue

With the first federal budget surplus in a generation and estimates of non-Social Security surpluses ranging from $750 billion to $1.9 trillion over the next decade, the issue is whether Congress and the President will agree to dedicate a portion of the projected surplus to tax cuts and, if so, what the impacts on states might be.

Tax issues raise several concerns for states.

How much of the potential non-Social Security surplus should be dedicated to tax cuts and breaks?

Absent any consensus on long-term legislation to ensure solvency of Social Security and Medicare, would major federal revenue losses for tax cuts risk shifting substantial entitlement burdens to states?

How would federal tax changes affect state income taxes?

What are key elements for states of any future major tax bill? In school construction? For retirement? For housing and economic development? For health care?

NGAís Position

NGA opposes reductions from current discretionary spending levels or changes that could risk the long-term solvency of the nationís Social Security and Medicare systems. NGA supports provisions to ensure reduced barriers to state and local capital finance through tax-exempt bonds and to ensure maximum flexibility in setting and maintaining state retirement plans and programs.